APEC labour markets: Structural change and the Asian financial crisis

This study examines the impacts of longer-term structural changes on the la bour markets of Asia Pacific Economic Cooperation (APEC) member economies, as well as the short-run labour market consequences of the Asian financial crisis. All A PEC economics have experienced significant structural change in the process of development. A major factor in this structural change has been increased trade intensity (increase in exports and imports as a share of GDP) that has occurred over the last 20 years. Because these structural changes have been extensively induced by trade liberalisation, this study provides insights into the likely consequences of the implementation of APE C's agenda on trade and investment liberalisation and facilitation. The imp act of structural change is examined using a range of data, such as disaggr egated changes in output and employment by industry and occupation over the period 1980 to 1997, and data on changes in trade intensity for each of th e APEC nations. Other data, such as changes in rates of urbanization, are a lso used to indicate the other important concomitant effects of economic tr ansformation. For several Asian economies, the linear path of growth and st ructural change was severely disrupted by the Asian financial crisis. This article examines the impact of this crisis on Asian labour markets, in gene ral, and those most affected by the crisis, in particular. In many countrie s within die region, a failure of education and training systems to respond to often rapid shifts in the skill composition of labour demand is leading to industry and occupation specific labour shortages. International labour migration within the APEC region is viewed as a product of these structura l changes and a mechanism that assists in filling gaps in the labour market s of the region's economies.